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In 1994 a bipartisan act was signed into law by President Bill Clinton creating the
Community Development Financial Institutions (CDFI) Fund. A report by the national
CDFI Coalition celebrating the 30th anniversary stated that this landmark legislation is
widely regarded as a smashing success.

As we celebrate the 30th anniversary of CDFIs, the Arkansas CDFI Coalition is launching
a new website to highlight the important role that CDFIs play in local, regional, and state
economic development. Small businesses are vital to the economy providing about 2/3
of the new jobs created. CDFIs play a critical role in addressing gaps in funding by
providing loans and access to training and technical assistance leading to local jobs and
growth.

In 2023 the Arkansas CDFI Coalition members provided $316 Million in financing to
Arkansas businesses helping to create and retain more than 3,000 jobs. In addition to
business financing, Arkansas CDFI Coalition members each offer additional services
ranging from mortgages to personal loans, to SBA loans, and target products designed
to meet a specific need.

CDFIs are mission-driven financial institutions that have a common mission but may
operate as banks, loan funds, credit unions, microenterprise funds, or venture funds.
Organizations go through an intensive process to become certified by the U.S. Treasury
as a Community Development Financial Institution and they are required to recertify
each year to ensure compliance with guidelines and mission.

Today, there are more than 1,460 Certified CDFIs across the country including 573 loan
funds, 356 CDFI banks, 516 credit unions, and 16 venture capital funds and include 66
Native CDFIs. In those 30 years, the fund has provided $38 Billion in loans and
investments to CDFIs in addition to tax credit allocations and bonds. You can read the
full 30th Anniversary Report here.

As we celebrate the 30th anniversary of CDFIs, it is important to also recognize the rich
history that helped to shape their success. From the immigrant guilds of New York
City’s Lower East Side and the Prairie Populists of the late 1800s, to African American
communities forming the first community development credit unions in the 1930s,
communities have sought self-help credit solutions back but the industry began taking
shape in the late 1960s and early 1970s. With roots in the civil rights and anti-poverty movements, activists began organizing alternatives to provide capital to “unbankable”
communities and people.